Housing market and remodeling slowdown
Demand depends heavily on North American and Chinese home improvement and new construction activity.
- Scope
- North America and China
- Materiality
- high
Fortune Brands Innovations, Inc.
Fortune Brands Innovations makes home, security, and digital products that are sold through dealers, wholesalers, home centers, showrooms, e-commerce, and other retail channels. Its portfolio is organized around Water, Outdoors, and Security, with products aimed at improving functionality, safety, sustainability, and connected-home features in residential and commercial spaces.
14,2 %
44,6 %
6,7 %
−3,2 %
1.84
0.89
| % | |
|---|---|
| Water Innovations | 40% Kitchen and bath products, including water-related fixtures and solutions sold through trade and retail channels. |
| Security | 30% Locks, access, and safety products for residential and commercial applications. |
| Outdoors | 30% Outdoor living and related home products sold to consumers and trade customers. |
The company sells to a mix of trade and retail customers, including kitchen and bath dealers, wholesalers serving...
- Home centersprimary
Large retailers such as Lowe’s and The Home Depot buy broad assortments for DIY and pro customers.
- Builders and remodelersprimary
Wholesalers and trade channels buy products used in new construction and renovation projects.
- Kitchen and bath dealerssecondary
Specialty dealers buy water and bath products for design-led residential projects.
- Security distributorssecondary
Industrial and locksmith distributors buy locks and access products for installation and resale.
- Direct-to-consumer and e-commerce buyersemerging
Consumers purchase branded products online or through retail outlets for home upgrades.
The company sells primarily in North America and China, with 2025 net sales based on country of destination of 84% in...
- •United States is the core market at 84% of 2025 sales
- •Canada contributed 8% of 2025 sales
- •China contributed 3% of 2025 sales
- •Other international markets contributed 5% of 2025 sales
- •International sales expose results to FX and trade risks
Management is focused on profitable organic growth through innovation, brand investment, and expansion into adjacent...
01
Innovation and connected productsmedium-term
New products and digital features help defend brands and open adjacent markets.
02
Supply chain excellence and simplificationshort-term
Lower cost, better service, and faster execution support margins and responsiveness.
03
Capital deploymentmedium-term
Acquisitions, JVs, and buybacks are intended to enhance returns and support growth.
The business is exposed to housing and remodeling cycles in North America and China, so demand can weaken when interest...
Customer concentration
A large share of sales comes from a small number of retailers and distributors.
- Scope
- Lowe's, The Home Depot, top ten customers
- Materiality
- high
Technology and AI execution risk
New technologies may require significant investment and may not improve results as expected.
- Scope
- Product design, pricing, forecasting, digital marketing
- Materiality
- medium
Supply chain and productivity risk
The company relies on global sourcing and manufacturing efficiency to protect margins and service levels.
- Scope
- Global supply chain
- Materiality
- medium
Regulatory and data privacy compliance
Operations are subject to changing privacy, information security, and solicitation rules in multiple jurisdictions.
- Scope
- US, EU, China
- Materiality
- medium
Inventory reserves
Inventory provision was $89.9 million at year-end 2025
Business combinations and intangible valuation
Customer relationships, tradenames, and technology valuations depend on forecast assumptions
Goodwill and indefinite-lived intangibles
Could create large non-cash charges
Derivative and hedging accounting
About $11.3 million of net derivative gains were expected to reclassify within 12 months
: 28.4.2026